An Item That Should Be Reported as a Prior Period

question 27

Multiple Choice

An item that should be reported as a prior period adjustment is the:

• A) Correction of an error in depreciation from last year.
• B) Payment of taxes due to a tax audit of last year's tax return.
• C) Payment of a previously recorded warranty expense.
• D) Receipt of the proceeds of a note receivable that was due last year.

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Definitions:

Diagnostic Tool

An instrument or method used for identifying the nature or cause of a particular phenomenon, often related to health conditions.

Societal Consideration

The process of taking into account the impacts and implications of actions or policies on the society as a whole.

Scientific Evidence

Information obtained through systematic observation or experimentation that serves as a basis for knowledge or conclusions.

Health Risk

The possibility of suffering harm or loss related to health.